PepsiCo, PBV and Honickman Prepare to Drive Local Growth, Agree to Swap Bottling Franchises in New York, North Carolina, Idaho and Vermont

PURCHASE, N.Y., RALEIGH, N.C., and PENNSAUKEN, N.J., March 20, 2013 /PRNewswire/ -- Seeking to drive growth locally, PepsiCo and two of its leading independent bottlers – Pepsi Bottling Ventures LLC (PBV) and the Honickman Group's Pepsi-Cola Bottling Company of New York (PCNY) – today announced their intent to transfer certain franchise ownerships in New York, North Carolina, Idaho and Vermont.

PepsiCo has agreed in principle to swap five counties of its company-owned North Carolina territory – including Charlotte – to PBV in exchange for PBV's 11 counties in Vermont and 18 counties in Idaho, which are contiguous to other PepsiCo-owned bottling territories. PBV in turn has agreed to sell its Long Island, N.Y., territory, including Nassau and Suffolk counties, to the Honickman Group's PCNY, which already operates in each of New York City's five boroughs – Manhattan, the Bronx, Brooklyn, Queens and Staten Island – and New York's Westchester County.

"This move drives operating efficiencies and improved customer service: one of our top priorities. Our strong independent bottlers will continue to play a big role in helping us do that – especially at the local level," said Al Carey, CEO of PepsiCo Americas Beverages. "Combining contiguous territories to build regional strength makes sense, particularly in New York and North Carolina, where the synergies are clear. Idaho and Vermont are well-run businesses that fold into our adjacent, company-owned operations and allow us to be simpler to do business with for our customers."

Said PBV President and CEO Paul Finney: "This is an exciting time for all of us. We look forward to welcoming Pepsi Charlotte into the PBV family and serving consumers and trade customers in North Carolina's largest city. This acquisition will allow us to significantly expand our footprint in the Carolinas while adding scale and leveraging our operating capability across PBV's regional core."

Said PCNY Chairman Harold Honickman: "We have known for a long time that consolidating our business in New York City and Westchester County with PBV's Long Island territory would be the right move for our combined business and our customers. Nassau and Suffolk counties provide the requisite scale for us to reinvest significantly in our make-sell-deliver capabilities and partner with PepsiCo to proudly reinvigorate our presence in the greater New York market."

Terms of the transactions, which are expected to close in the second quarter of 2013, were not disclosed.

About PepsiCoPepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. Our main businesses – Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-Cola – make hundreds of enjoyable foods and beverages that are loved throughout the world. PepsiCo's people are united by our unique commitment to sustainable growth by investing in a healthier future for people and our planet, which we believe also means a more successful future for PepsiCo. We call this commitment Performance with Purpose: PepsiCo's promise to provide a wide range of foods and beverages for local tastes; to find innovative ways to minimize our impact on the environment by conserving energy and water and reducing packaging volume; to provide a great workplace for our associates; and to respect, support and invest in the local communities where we operate. For more information, please visit www.pepsico.com.

About PBVA joint venture between Suntory International and PepsiCo (35-percent ownership), PBV is the largest privately held bottler of Pepsi-Cola products in North America, currently operating 28 bottling and distribution facilities and serving more than 9 million consumers in North Carolina, New York, Maryland, Delaware, Vermont, Virginia, Idaho and South Carolina. For more information about PBV, including job opportunities, visit www.pepsibottlingventures.com.

About the Honickman GroupHeadquartered in Pennsauken, N.J., the Honickman Group of companies together is one of the nation's largest privately owned Pepsi-Cola bottlers. They make, sell and deliver Pepsi-Cola products primarily in the New York City market and surrounding counties, as well as Gloucester, Camden and Burlington counties of southern New Jersey.